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Your guide to trading Hang Seng 50

Trade Hang Seng 50 CFDs, other major indices, forex, shares, commodities and cryptocurrencies through Capital.com’s award-winning platform. No commission. FCA and CySEC regulated. Up to 1:200 leverage (professionals only). Available on web and mobile. AI technology. Trade now.
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Why is the Hang Seng 50 index important to traders?

The Hang Seng 50 is an index of the 50 largest and most actively traded companies listed on the Hong Kong Stock Exchange. Founded as a “Dow Jones Index for Hong Kong”, the Hang Seng 50 serves as a benchmark index and the major indicator of Hong Kong’s market performance, as well as a proxy for a wider Asian market.

The HSI embraces the largest and most liquid stocks in the local market, largely dominated by finance companies. The components of the index are divided into four sub-indices: Finance; Commerce and Industry; Properties; and Utilities.

Traders like to follow the Hang Seng 50 index because it can offer exposure to substantial market price volatility and significant day-to-day fluctuations. The Hang Seng 50 is known for its volume and volatility compared to the other major indices, and attracts numerous day traders trying to profit from short-term price movements.

Hang Seng 50

Hang Seng 50 trading hours

The Heng Seng companies are all listed on the Hong Kong Stock Exchange (HKEX). The main trading hours for the Hang Seng 50 index are between 02:45 – 05.30 (GMT) for the first trading session, and 07:30 – 09:15 for the second trading session.

You can trade the Hang Seng index with Capital.com from Monday to Friday, 02:20 – 17.55, and monitor the Hang Seng index live price changes using our Hang Seng 50 chart.

How is the Hang Seng 50 calculated?

Like other global stock market indices, the Hang Seng 50 index tracks a basket of individual companies, and changes in their share prices will affect the index throughout the trading day.

The HSI is calculated in real-time at 2-second intervals during the trading hours of the Hong Kong Stock Exchange (HKEX). The index weights its components according to their market capitalisation. Therefore, the biggest constituents enjoy a higher percentage weighting, while the smaller ones hold lower weights.

Hang Seng classification system and admission criteria

The Hang Seng index sub-divides its constituents into several different sectors according to the Hang Seng Industry Classification System. It considers the following factors:

  • Sales revenue

Sales revenue is the key criteria for stock classification. Profit and assets are also considered.

  • Major source of sales revenue

The class of the index component is determined according to where it receives the  majority of its sales revenue.

  • Re-classification

Change of a component’s sector may happen due to a major update in a company’s business, such as a merger or an acquisition.

The nominees to the HSI have to meet the following criteria to enter the index:

  • They must be among those that are within the top 90% of the total turnover on the Stock Exchange of Hong Kong
  • They must have at least a 24-month listing history. Otherwise, they will have to meet the guidelines for newly listed large-capitalisation stocks.
  • The HSI constituents are reviewed quarterly by Hang Seng Indexes Company Limited (HSIL) at the end of March, June, September and December each year.

How to trade Hang Seng CFDs

The Hang Seng 50 index represents the major companies  of the Hong Kong exchange and covers almost 65% of its total market capitalisation. Due to Hong Kong’s status as a special administrative region of China, the index also serves as a proxy of a wider Asian market.

The HSI is a way to gain exposure to the Hong Kong stock market without having to analyse the performance of individual companies. The Hong Kong’s Hang Seng financial index typically provides traders with a high degree of liquidity, long trading hours and tight spreads.

You can trade the Hang Seng index live using CFDs (contracts for difference). Using CFDs to trade the Hang Seng 50 will allow you to go long or short the market without having to deal with conventional exchanges. You trade direct with your CFD broker.

The index has good  volume and volatility as it is made up of a wide cross-section of liquid trading instruments, making the Hang Seng 50 popular with CFD traders around the world.

Why trade Hang Seng Index CFDs with Capital.com

Advanced AI technology at its core: A Facebook-like news feed provides users with personalised and unique content depending on their preferences. If a trader makes decisions based on biases, the innovative News Feed offers a range of materials to put him back on the right track. The neural network analyses in-app behaviour and recommends videos and articles to help polish your investment strategy. This hopefully helps you refine your approach when you trade Hang Seng 50 index.

Trading on margin: Providing trading on margin (20:1 for major indices), Capital.com gives you access to the Hang Seng 50 index with the help of CFDs.

Trading the difference: By trading CFDs on the Hang Seng index, you don’t buy the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of its price. CFD trading is no different from traditional trading in terms of its associated strategies. A CFD investor can go short or long, set stop and limit orders and apply trading scenarios that align with his or her objectives. So whether your view is positive or negative, you can trade Hang Seng 50 in both directions.

All-round trading analysis: The browser-based platform allows traders to shape their own market analysis and forecasts with sleek technical indicators. Capital.com provides live market updates and various chart formats, available on desktop, iOS, and Android.

Focus on safety: Capital.com puts a special emphasis on safety. Licensed by the FCA and CySEC, it complies with all regulations and ensures that its clients’ data security comes first. The company allows to withdraw money 24/7 and keeps traders’ funds across segregated bank accounts.

Businesses on the Hang Seng 50

On 2 January 1985, the index was divided into 4 sub-indices, in order to make it clearer and classify the constituent stocks according to four major sectors: Finance, Commerce and Industries, Utilities and Properties:

Source: HSI.com

A list of the current companies trading on the Hang Seng today, correct as of November 2018:

HSI – Finance

HSI – Properties

HSI – Utilities

HSBC Holdings

Henderson Land

CLP Holdings

Hang Seng Bank

SHK PPT

HK & China Gas

HKEX

New World Dev

Power Assets

CCB

Sino Land

China Res Power

AIA

Hang Lung PPT

CKI Holdings

ICBC

China Overseas

 

Ping An

Link REIT

 

Boc Hong Kong

China Res Land

 

China Life

CK Asset

 

Bankcomm

Wharf REIC

 

Bank Of China

Country Garden

 

HSI – Commerce & Industry

CKH Holdings

Petrochina

Sunny Optical

Swire Pacific A

Cnooc

Sinopec Corp

Galaxy ENT

China Mobile

Tencent

MTR Corporation

Hengan INT'L

China Unicom

Want Want China

China Shenhua

AAC Tech

Geely Auto

CSPC Pharma

Shenzhou INTL

Citic

Sino Biopharm

Mengniu Dairy

WH Group

Sands China LTD

 
Hang Seng

History of the Hang Seng 50

Maintained and regulated by Hang Seng Indexes Company Limited, the Hang Seng Index was first published in its current form on 24 November 1969.

Historically, the Hong Kong Stock Index reached an all-time high of 33,154.12 in January 2018. The HIS’s record low of 58.61 happened in August 1967.

The list of other milestone dates for the Hong Kong’s major financial index include the following:

Date

The HSI’s Major highs and Lows

31 July 1964

The HSI was first published with a base value of 100 points

31 August 1967

The HSI hit its all-time low of 58.61

10 December 1993

The Hang Seng Index reached the 10,000 milestone

28 December 2006

The HSI reached the 20,000 point milestone

18 October 2007

The Hang Seng passed the 30,000 milestone

30 October 2007 –
9 March 2008

The index lost 9,426 points, around 30%, in response to the global financial crisis

13 April 2015

The index closed at 28,016.34, the highest mark since 2007

24 June 2016

The market fell 1,000 points in response to the Brexit vote

12 January 2018

The index reached its all-time high of 33,154.12

On Tuesday, 6 November 2018, the Hang Seng increased 187 points or 0.72% up to 26,121 from 25, 934 in the previous trading session. To follow the most recent ups and downs of the Hong Kong 50 index, check out our live Hang Seng Index (HIS) price chart.

FAQ

Though the HSI is the most frequently quoted index for the Hong Kong’s stock market, there are a number of other related indices, which include mid- and small-cap companies.

These include the Hang Seng:

  • China Enterprises
  • China-Affiliated Corporations
  • China H-Financials
  • Corporate Sustainability
  • Mainland 100
  • HK 35
  • REIT
  • China 50
  • H-Share Index ETF-HK
  • China AH Premium
  • HIS Volatility
  • China A Industry Top

The Hong Kong Stock Exchange (HKEX) is one of the leading market operator’s in the world. Positioned at the intersection of the international and Chinese capital flows, Hong Kong has been successfully connecting Chinese markets with the rest of the world for many years.

Today, the HKEX has grown into the sixth largest stock market in the world, and the third largest in Asia, after the Japan’s Tokyo Stock Exchange and China’s Shanghai Stock Exchange.

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